Iowa's private school enrollment grows
Why it matters: The state's new law is helping more families afford alternative schooling options, CSI researchers say.
Flashback: Gov. Kim Reynolds signed a bill into law in 2023 allowing students to take public school funding allocated for them each year and use it toward private school tuition through a savings account.
For the first two years, only kindergartners, public school transfer students and families earning up to 400% of the family poverty line (about $120,000 for a family of four) can apply for $7,800 annually to reimburse their tuition and education costs.
Starting in July, ESAs will be open to anyone, regardless of income.
How it works: Using data from the Iowa Department of Education, CSI researchers found that between 4,500 and 5,600 students who previously attended a public school switched to a private school after the ESA program started.
They believe those students switched due to the program helping lower costs for families, which shows the program is so far a success, Ben Murrey, CSI's director of policy and research, tells Axios.
By the numbers: Private school enrollment in Iowa is rising, while public school numbers have decreased slightly since the start of the ESA program, according to numbers from the state Department of Education.
For the 2024-25 school year, 27,866 students used the ESA program; 7% of those students attended a public school the previous school year.
Meanwhile, public school enrollment decreased by 0.6% between 2023-24 and 2024-25.
Private school enrollment grew 60% between 2023-24 and 2024-25, going from 17,000 to 27,866 students.
By 2026-27, the state estimates, 45,000 students will be using an ESA account.
The other side: While the program may increase access for some Iowans, 44 rural Iowa counties don't have any non-public school options for students, says Melissa Peterson, policy director for the Iowa State Education Association, which advocates for public school staff.
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